Yahoo said that search volume
reached a five-year high thanks to its recent deal with Mozilla.
And the company continued to show progress in its so-called
"Mavens" group of businesses — mobile, video, native and social —
which totaled $363 million.

"We’re deep in the turnaround and there’s no turn," said Colin
Gillis, an analyst with BGC Financial. "They missed on the bottom
line. They missed on the net revenue line."

Yahoo is trying to reverse a
multi-year erosion of its revenue due to weakness in its display
advertising and search businesses. CEO Marissa Mayer took a big
step to change its fortunes in Web search this month by
renegotiating the termsof
its 10-year search partnership with Microsoft, which has served
as the exclusive provider of the search results and search ads on
Yahoo’s desktop PC website since 2010. The revised deal terms
give Yahoo the flexibility to sell its own search ads 49% of the
time.

Yahoo forecast that net revenue
in the second quarter would range between $1.01 billion and $1.05
billion. Analysts were looking for $1.04 billion.

Investors are also keen for more details on Yahoo’s plans to spin
off its 15% stake in Chinese e-commerce giant Alibaba Group as
well as the potential for Yahoo to monetize a 35.5% stake in
Yahoo Japan.